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Spotlight: Advanced economies lack tools to deal with sluggishness
Xinhua, August 23, 2016

Since the 2008 global financial crisis struck, policymakers in advanced economies have adopted various kinds of measures, ranging from fiscal, monetary to structural ones, to try to revive the economy, but to no avail.

The tools used to deal with the global financial crisis in its early stage, such as huge deficit and quantitative easing, proved to be insufficient in face of a sluggish global economic growth.

As a result, both the euro zone and Japan now have negative interest rates while waves of easing and huge "cheap money" failed to invigorate their economies.

As chief economist at ING Belgium Peter Vanden Houte recently put it, "the ECB's toolbox is getting emptier."

At the same time, the refugee crisis continues to drag down Europe, creating a profound influence on the European economy and society.

From the economic perspective, the refugees, most of whom are young people, are viewed as a complement to Europe's increasingly ageing labor market. However, integration problems have surfaced.

Europe is now divided on how to deal with the migrant crisis, which helped stimulate a rise of far-right political parties, fueled conservatism and populism across the continent and took a toll on the bloc's openness in trade and the economy.

The United States, the largest economy in the world, also has its own problems. The Economist, a highly regarded magazine, reported the split and polarization of the U.S. society.

The fact that Donald Trump has become a presidential candidate shows the anger and dismay of the people in the U.S. society, it said.

In Japan, Prime Minister Shinzo Abe presented the lofty stimulus plan and promised to use "three arrows" of monetary stimulus, fiscal stimulus and structural reform to boost economic growth. But the results showed clearly the "the three arrows" have largely failed or misfired.

The advanced economies are faced with a fast-aging society, a sluggish market demand and persistent debts, some economic experts said.

The difficult situation is the accumulated result of the debt crises in the long term, they said.

To put it another way, the debt crises of the advanced economies are far from over. But advanced economies are now trapped in a dilemma as to how to solve the problems: the market would lost confidence if the pace is too slow, while economic recovery would be damaged if it goes too fast.

In the crucial structural reforms, advanced economies struggle and advance slowly due to party strife, ambiguous reform aims, directions and steps as well as wavering policies.

With regard to the market, some main market bodies in the advanced economies are indifferent to the risks after the global financial crisis while financiers and enterprises are self-satisfied with a tendency to pursue short-term profits and take on too much risk, some experts said, warning of the danger of the outbreak of a new financial crisis.
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It looks like all of us are in for a tough ride.

Folks, please tighten your "financial seat-belt" and get ready for the ride.

The world financial system is long overdue for a big shakeup.

Let's hope things will get better.
 
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Shanghai to allow expats over 60 to work
2016-08-20 20:29:37 CRIENGLISH.com Web Editor: Huang Yue

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A screenshot of the official website of Shanghai Administration of Foreign Experts Affairs [Photo: shafea.gov.cn]

When Ford Motor Company decided to move its Asia-Pacific headquarters from Singapore to east China's Shanghai, it was told that the company's president couldn't apply for his employment permit because he was over 60 years old.

This dilemma will no longer happen in Shanghai!

Shanghai is now sparing no effort to offer a variety of conveniences to overseas talents. Senior foreign executives in Shanghai who formerly were too old to apply can now apply for the "foreign expert certificates" to get legal residence. Moreover, the city is considering loosening the home-purchase restrictions and household registration requirements for foreign experts.

As the financial hub of China, Shanghai has long been the paradise where international talent and elites can distinguish themselves. However, due to the limitation and restriction of some policies, many foreigners have encountered difficulties when facing the residence issue.

Hu Zhangping, an official from the Shanghai municipal committee, says in the past, some transnational corporations' senior executives who were over 60 years old couldn't apply for the residence permits when they came to work in Shanghai, because in China the retirement age for men is 60.

"Shanghai is now trying to make some changes on the basis of the country's policies. For example, we can allow those over 60 foreign managers to apply for a foreign expert certificate. The age limitation can be broadened to 70." Hu said.

What's more, according to the current policy, foreign college students in China need to go back to their countries and work for two years before they can apply for jobs in China. But in Shanghai, foreign students with master's degrees can directly look for jobs in Zhangjiang High-tech Industrial Development Zone and the Pilot Free Trade Zone.

Statistics released by the Shanghai public security bureau in July of last year showed that China has issued over 7,000 permanent residence permits, or the "Chinese green cards", since reforming and opening-up, among which 2,000 have been issued for Shanghai residence. However, in reality only some 200 permits have really been issued to overseas expats.
 
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Digitimes Research: China IC self-sufficiency rate to reach 40% by 2020

Nobunaga Chai, DIGITIMES Research, Taipei

[Tuesday 23 August 2016]

China is set to improve the self-sufficiency rate for ICs in the nation to 40% in 2020, and could even exceed the target ratio, according to Digitimes Research.

The "Made in China 2025" published by China's State Council in May 2015 clearly outlines that the nation is aiming to raise its self-sufficiency rate for ICs to 40% in 2020, and 70% in 2025.

Digitimes Research forecasts that China's 12-inch pure-play foundries will see their combined production capacity grow substantially by the end of 2018. A leap in 12-inch wafer capacity could help the nation ramp up the self-sufficiency rate for production of chips to more than 40% by 2025.

Semiconductor Manufacturing International (SMIC) and the Beijing municipal government have set an example of how China's local governments and IC companies can build a relationship with each other. The pair in May 2012 announced plans to establish jointly a 12-inch fab in Beijing. In June 2013, Northern SMIC Semiconductor Manufacturing (Beijing) - a joint venture between SMIC, state-owned Beijing Industrial Development Investment Management and Zhongguancun Development Group - was formed. Northern SMIC in February 2015 successfully attracted investment from China's National Semiconductor Industry Investment Fund (known as the Big Fund).

China's local governments including the governments of Xiamen, Hefei, Nanjing and Chongqing all intend to follow suit by partnering with foundries to build their local IC industry clusters. In addition, the governments of Dalian and Hubei are both pouring efforts into the establishment of a cluster of 3D NAND flash sector.

http://www.digitimes.com/news/a20160822PD203.html

@Bussard Ramjet ;)
 
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Cofco to buy remaining stake in Nidera to take full ownership
(Agencies) Updated: 2016-08-24 11:11

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A Chinese employee is seen at the stand of COFCO (China National Cereals, Oils and Foodstuffs Corporation) during a food exhibition in Shanghai, Nov 16, 2014. [Photo/IC]

Chinese State-run grain trader Cofco Corp said on Tuesday it will buy the remaining stake it does not already own in Dutch firm Nidera, the latest move to expand its global footprint.

It will buy the minority take from Cygne BV, bringing its ownership in Nidera to 100 percent. The closure of the transaction, which is subject to regulatory approvals, is anticipated to take place in the fourth quarter.

Cofco bought its initial stake in Nidera in February 2014.
 
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State Grid leads China's top 500 enterprises list
2016-08-27 17:23:34 CRIENGLISH.com Web Editor: Zhang Xu

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Logo of State Grid. [Photo: Baidu]


A 2016 list of top 500 Chinese enterprises has been released by the China Association of Enterprises.

State Grid, China's dominant electrical utility service provider, tops the list for the first time, replacing Sinopec, which has held that position for the last ten years.

Total revenue of the service industry takes up 40.2 percent of the whole economy, exceeding the 39.3-percent of the manufacturing industry for the first time.

Vice president of the China Association of Enterprises, Li Jianming, explains the reasons, "One of the reasons for these new features and trends in Chinese economy, is that the government has made efforts to improve policies on promoting large enterprises and bring the relevant institutions and mechanisms to further perfection. The other reasons is that Chinese large enterprises are vigorously facing up to challenges, strengthening innovation-driven measures, deepening structural readjustment, improving efficiency upgrading, making full use of both overseas and domestic markets and their resources in an effort to thoroughly integrate with the global value chain."

The top 500 enterprises own some 50,000 subsidiaries and 12,600 branch companies in total, with their operations closely related to the everyday lives of almost all Chinese citizens.
 
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Beijing to close 300 industrial firms this year
2016-08-31 14:50Ecns.cn | Editor: Wang Fan

(ECNS) -- Beijing will shut down 300 companies and 90 markets this year amid massive efforts to refocus the capital through integration with neighboring regions.

Wang Haichen, executive deputy director of Beijing's Leading Group for Beijing-Tianjin-Hebei Integrated Development, said the capital would accelerate the pace by transforming wholesale markets and improving services.

He said Beijing has already suspended production at 174 manufacturing companies thought to run counter to the city's repositioning and also upgraded 25 markets.

To ease traffic jams, control pollution and support coordinated development, Beijing has teamed with Tianjin and Hebei to relocate industries through a slew of measures.

Wang said the capital city is also working on other measures to support regional integration such as establishing a development fund and studying the new use of land after moving its users.

Colleges under the direct administration of the Beijing government have cut enrollment by 10 percent, with new campuses planned in suburban areas.
 
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http://en.people.cn/business/n3/2016/0901/c90778-9108618.html

China's manufacturing activity expands in August


BEIJING, Sept. 1 (Xinhua) -- Activity in China's manufacturing sector expanded in August due to a recovery in market demand and a rebound in production, official data showed Thursday.

The purchasing managers' index (PMI) came in at 50.4 in August, rising from 49.9 in July and beating the market expectation of 49.8, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing.

A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

NBS statistician Zhao Qinghe said both production and demand picked up in August.

The sub-index measuring production stood at 52.6, up 0.5 percentage points from July and also the highest level since the start of the year.

The sub-index for new orders settled at 51.3, 0.9 percentage points higher than the previous month.
 
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National projects aimed to help revive China's rust belt
2016-08-31 08:54Xinhua | Editor: Wang Fan


Construction has begun on a power transfer project linking China's resource-rich northeast to its energy-thirsty eastern regions.

The 800-kv ultra-high voltage (UHV) direct current (DC) power transmission project, connecting Jarud in Inner Mongolia Autonomous Region to Qingzhou in Shandong Province, will transfer the abundant coal, wind and solar power in Inner Mongolia, Jilin, Heilongjiang and Liaoning in northeast China and consume more than half of the local surplus power.

With total estimated spending of 22.1 billion yuan (3.1 billion U.S. dollars), the 1,234-km line is expected to transmit 55 billion kwh of power, reducing coal consumption in north China by 25 million tonnes every year.

A launch ceremony for the project was held in Beijing on Friday and construction is expected to be completed next year.

It was the first project to be included in a national multi-billion-dollar plan to boost northeast China's flagging economy.

The three-year revival plan, announced by the National Development and Reform Commission (NDRC) on Aug. 22, involves a total of 127 major projects in the northeast from 2016 to 2018, plus major work in 137 areas.

The wide-ranging plan covers sectors including transportation, energy, water conservation, agriculture, as well as urban and rural development.

More than 1 trillion yuan will be invested in the projects, financed by private companies as well as central and local governments, said Zhou Jianping, an NDRC official.

The money will not be spent on industries that suffer overcapacity, but go to key areas to create growth, such as infrastructure and emerging industries, he said.

The northeast, which includes Liaoning, Jilin and Heilongjiang provinces and part of Inner Mongolia Autonomous Region, was among the first regions in China to be industrialized, relying largely on heavy and chemical industries, energy resources, raw materials and a large number of state-owned enterprises.

Amid an economic slowdown in the last two years, the region has experienced more difficulties than the rest of the country. According to NDRC data, the region's economy grew 2.2 percent in the first half of 2016, much lower than the 7.6 percent, 7.8 percent and 8 percent for the east, central and western regions of the country, respectively.

Economic observers believe the projects will help "stabilize" a staggering economy, winning breathing space for the region's ongoing structural reform and economic transformation.

According to a recent statement by Shenyang United Assets and Equity Exchange, Liaoning Province will sell stakes in some of its state-owned enterprises, an important step for the structural reform of SOEs. The province was the country's worst economic performer in H1 as its gross domestic product contracted by 1 percent in the period.

Experts expect local governments to be offered more rights to explore so that more measures will be put in place to free the market and eradicate the negative influence of the region's previously planned economy.

Liang Qidong, vice president of the Liaoning Academy of Social Sciences, advised the central government to approve establishment of a free trade zone in Dalian as soon as possible to play an experimental role in the region's reform.

According to the five-year plan of Liaoning, the province plans to apply for establishment of the Dalian Free Trade Zone before 2020.

Other suggestions to stimulate the local economy include supporting hi-tech enterprises to gain easier access to financing in the capital market.

"Rather than rely on central government investment, the northeast should step forward to promote structural reform with enduring efforts," said Jin Fengjun, a researcher with the Chinese Academy of Sciences.
 
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China adds 7 new free trade zones
2016-09-01 08:14 | Xinhua Editor: Mo Hong'e

Chinese authorities have decided to set up seven new free trade zones (FTZs) across the country, bringing the total number to 11 as China looks to replicate the success of previous trials.

The new FTZs will be located in the provinces of Liaoning, Zhejiang, Henan, Hubei, Sichuan and Shaanxi as well as Chongqing Municipality, according to commerce minister Gao Hucheng.

The expansion came nearly three years after the launch of China's first FTZ in Shanghai to test a broad range of economic reforms, including more openness to foreign investment and fewer restrictions on capital flows.

In late 2014, Tianjin, Fujian and Guangdong were approved to set up the second group of FTZs.

With the addition of 7 more FTZs, China is hoping to press ahead with wider reforms, while allowing the regions to tap their unique geographical and industrial advantages for further experiments.

"The decision to expand the FTZs shows authorities' strong resolution in advancing reforms and opening up," Gao told Xinhua in an interview.

He said the FTZs will be launched following necessary procedures, but did not give a timeframe.

According to Gao, Liaoning Province in northeast China will focus on market-oriented reforms to transform the old industrial base into a more competitive area, while coastal Zhejiang is expected to explore trade liberalization of commodities and improve capacity of global allocation of commodities.

Central China's Henan will tap its potential in transportation and logistics, and Hubei will build high-tech bases and facilitate the development of the Yangtze River Economic Belt.

China hopes the FTZs in Chongqing, Sichuan and Shaanxi, all in the country's less developed west, will help open the regions to bring out their economic vitality.

Among the successful trials in the first two groups of FTZs has been the introduction of a "negative list," which specifies investment sectors off-limits to foreign investors and allows industries not on the list to follow the same new investment rules as domestic firms.

The policy has led to a surge in business registrations. In the first half of 2016, a total of 4,923 foreign-funded firms were established in the four FTZs, with investments amounting to 359 billion yuan.

According to a poll conducted by the Development Research Center of the State Council, 82 percent of firms surveyed reported "notable progress" in the business environment, and 95 percent were optimistic about future development.

Encouraged by the results, China is considering expanding the approach nationwide. During its bimonthly session, the National People's Congress (NPC) Standing Committee considered provisions that may allow foreign and Taiwanese investors to start businesses across the country as easily as in the four FTZs.

The Ministry of Commerce said it will work on a nationwide negative list for foreign investment if the top legislature passes the bill.
 
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May 19, 2016 10:07 AM Eastern Daylight Time
CORONA, Calif.--(BUSINESS WIRE)--TCL®, one of the world’s largest television manufacturers and America’s fastest growing television brand, is positioned to maintain its leadership and add even more large size TVs to its award-winning lineup. China Star Optoelectronics Technology Co., Ltd. (CSOT), a leading TV panel supplier and a subsidiary of TCL Group, will soon begin construction of the world’s largest Gen 11 LCD panel fabrication plant in Shenzhen, China. The plant, estimated to cost $7.8 billion, will produce extra-large high-resolution flat panel displays targeting 65" and larger LCD TV markets. When complete, the new production line will surpass BOE’s Gen 10.5, which started construction in December 2015, in terms of generation and investment, marking a new milestone in the display area for CSOT.

Rising TV brand @TCL_USA heading into large TV space w supplier CSOT in China, for world's largest Gen 11 LCD plant

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This new production capability adds to TCL’s continued investment in making CSOT, which first began production in 2009, one of the world’s leading panel factories. CSOT currently runs two Gen 8.5 lines which are ideal for producing panels as large as 55", while the Gen 11 higher-generation production lines offer great efficiency for larger-size panels. With the over-supply of traditional panels through competitors’ Gen 8.5 capabilities and few suppliers with large size capabilities, the decision to build a Gen 11 fab was born.

“As TCL grows rapidly in the U.S., the expanded capabilities of CSOT are critical in helping us keep up with demand,” said Chris Larson, vice president, sales and marketing, TCL. “We already benefit from a vertically integrated supply chain that gives us cost advantages over our competitors, and this investment will allow us to take a leadership position in large size TVs.”

While the growth rate of traditional displays is slowing down, there’s a huge demand for large-size high resolution panels. The global market has seen the mainstream TV size shifting, with demand for large-size TVs estimated to grow at an annual rate of more than 20 percent. Although displays bigger than 55" account for only 10 percent of today’s TV market, the prospect of extra-large LCD panels is promising and large-size high-resolution TVs will soon be mainstream. Upon completion, the Gen 11 panel fab will allow TCL to meet the needs of consumers in this emerging segment.

About TCL

TCL is one of the fastest growing consumer electronics and TV brands in North America. Already one of the world's best-selling TV brands, TCL (The Creative Life) was founded more than 30 years ago and prides itself on delivering high quality products featuring stylish design and the latest technology. With extensive manufacturing expertise, a vertically integrated supply chain, and state-of-the-art panel factory, TCL offers innovative televisions, including the award-winning TCL Roku Smart TV, at a great value.

About CSOT

Shenzhen China Star Optoelectronics Technology Co., Ltd. is a China-based display maker established on November 16, 2009, owned by TCL, Century Science & Technology Investment and Samsung Display. The company now has three production lines, namely T1, T2 and T3, producing small and large LCD panels for TVs, smartphones and tablets. For more information, please visit http://www.szcsot.com/.

TCL is a registered trademark of TCL Corporation.

Roku is a registered trademark and Roku TV is a trademark of Roku, Inc. in the U.S. and in other countries.



Contacts
TCL
Rachelle Parks, 858-212-1176
rachelle.parks@tcl.com
http://www.businesswire.com/news/home/20160519005984/en/TCL-Build-World’s-Largest-Gen-11-LCD
 
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TCL announces a $6.96 billion LCD/AMOLED IGZO Gen-11 fab in Shenzhen
Aug 29, 2016
CSOT
Financial
OLED production
Oxide TFT
Ink-jet printing


It 2013 it was reported that TCL plans to invest over $4 billion to build a new 8.5-Gen LCD and OLED fab in Shenzhen, owned by CSOT. The so-called Huaxing Power Two OLED fab never materialized... at least until now.

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TCL released information that it now seeks to $6.96 billion to build a new LCD and OLED Gen-11 production fab in Shenzhen. The new fab, built by TCL and Shenzhen Huaxing Power with help from the Shenzhen Economic and Trade Commission, will have a monthly capacity of 90,000 Gen-11 substrates (3370x2940 mm) and use IGZO backplanes.

TCL aims to start building the fab towards the end of 2016, and construction is planned to end by January 2018 and equipment will begin installation in July 2018. Mass production will begin in April 2019. The fab will produce a wide range of LCD TVs (43 to 75 inch) - and OLED TV panels, using "printing OLEDs" technologies. Interestingly, TCL's chairmen said in 2015 that future OLED TVs will indeed be produced using printing...
http://www.oled-info.com/tcl-announces-696-billion-lcdamoled-igzo-gen-11-fab-shenzhen

 
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Tuesday, September 6, 2016, 10:01
CIC sets its sights on major global role
By Cai Xiao and Fang Wenyu

China Investment Corporation is expected to become the world's largest sovereign wealth fund in two years with assets totaling US$1 trillion under management by that time, according to its chairman.

"We have laid solid foundations in the past nine years, and we will stick to our original aim of becoming a world leading and respectable sovereign wealth fund," Ding Xuedong, chairman and CEO of China Investment Corporation, told Economy & Nation Weekly.

China Investment Corporation had assets totaling more than US$810 billion under management by the end of 2015, and its annualized growth rate of State-owned capital reached 15.3 percent since CIC's inception, according to CIC's financial report of 2015.

"CIC's assets under management will exceed US$1 trillion in two years based on this growth," said Ding.

Niu Huayong, dean of the Business School at Beijing Foreign Studies University, said it is within expectations that China Investment Corporation will grow into the world's largest sovereign wealth fund.

"China Investment Corporation has done a great job and an important reason is that their leaders of the sovereign wealth fund are ambitious," said Niu.

Li Shuguang, a law professor at China University of Political Science and Law, said different from other countries, the amount of China's State-owned capital is very huge and the nation's sovereign wealth fund is very strong.

"As the global economy remains volatile, CIC is also transforming its strategy, investment areas and corporate governance," said Li.

Li suggested that with stronger investment capability, CIC can even further diversify its investment portfolio.

Ding said CIC will pay attention to alternative investments, referring to investments in asset classes other than stocks, bonds and cash, in the future and set up a sustainable development mechanism to prevent risks. Previously, CIC mainly invested in public equity and fixed income.

CIC's financial report for 2015 showed that due to volatilities in international financial markets and foreign exchange losses triggered by an appreciating US dollar, CIC's overseas investments generated a dollar-denominated net return of-2.96 percent in 2015 and a net cumulative annualized return of 4.58 percent since CIC's inception.

"We are diversifying our investment," said Ding. "CIC is increasing investments in alternative investment including private equity, hedge funds, real estate and infrastructure to achieve steady investment returns and seek opportunities in emerging industries."

Ding said it is cooperating with excellent private equity investors to co-invest and to strengthen its capabilities in direct investment.

CIC is also expanding real estate investment in developed countries, after setting up an independent real estate investment department in 2015 which made nine deals last year.
 
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